They are of different shape and management and are formed for different purposes depending on the type corporate and also have different legal obligations.
We explain the different types of companies. The most common is the general partnership, this company is as simple as it has no special obligations of the law than those common to any business and is not established except for a common goal of all members . Each member has the same civil liability and/or criminal before the law.
The limited liability company is as the name implies, the company has limited liability under the law.
What does this mean? That unlike what happens for general partenership and single company, the shareholders do not risk their own money (eg. the state can not seize the house to pay off business debts), but only that company.
I bet someone is already thinking, but I do a limited company very nearly. It is not so simple. A limited liability company has a value of investments ten times larger compared to a general parternship individual or a company because there are more guarantees that members must make, at its creation.
Another type of society is the JSC, a joint stock company. Members issuing shares for the capital invested in the company, what happens when the initial capital is, or when the company increases its capital above the 100,000 € (in Italy)usually opt for a choice like this to better manage shares of the company.
In general parternship and limited liability companies quotas are allocated according to the amount of money paid in initial capital; make an example of a company that has three members each member shall pay € 5,000 as the capital of the company to fund the initial expenses, the lawyer for the constitution, the stamps, the 'opening of the VAT, the first machines, the rental or purchase of a property. The profits will then be distributed at the end of the year, according to the percentage of investment capital, in this case: 33.3% for all members.
This is feasible because the investment is not high, while in JSC The starting capital is high and there may be even 10 or 11 members and percentages may be complicated, so the company is managed capital into shares, each share is a share of capital that each partner will acquire, for the convenience of the example, each action will be 500 € and the value of the share capital of 100,000 € will, and then calculating the percentage distribution of profits will be more precise.
A JSC has the same obligations of a limited company, no substantial difference.
There are more than forms of company: cooperative company with limited liability and limited partnerships.
The first is a cooperative company with limited liability, and it operated as a limited company, the only difference is that the company's partners also work within the cooperative and did not exist but only employees working members. (The theory and practice are very different here, and we will discuss in a separate article).
The second are limited partnerships and companies that are created for a purpose described in the statute, and once the predicted end, the company ceases to exist without there being complicated procedures such closing. some people want to create a company to sell products at low cost to a country in emergency after an earthquake, then create a limited partnerships and do not specify the length of time, but you know that just after the emergency, the sas will cease to exist in a civilized country should take up to 1 year unless they have had a shock at 10 ° on the Mercalli scale.
There are limited partnerships, but are not simplified, ie they have a longer life than the simple but not more than 90 years (check).
Categories are part of the economic groups and corporations.
The business groups are two or more interconnected companies, there is a business leader or leaders who invests a portion of its profits in other smaller companies and that may not have the same economic purpose. So, for example, exists in a company that buys the share capital of two companies, B and C, for 52% of B and C of 53%, since that company A holds a majority stake (over 50%) of companies B and C is said to be the parent, while company B and C are controlled.
The parent company is financially independent, while the subsidiaries must be limits imposed by its parent. In this case we speak of economic groups and parent companies are no longer called Company A, but will be called Group A.
So when you hear for example the Fiat Group, Mediaset Group or another will mean that these companies are the parent of other smaller companies.
Finally there are the multinationals or companies which have multiple locations in several different states and a single parent home residing in a specific state. In this case there is a corporate accountability and a leader, as all locations different from the main ones are the same, the same company but operating in different countries or continents.
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